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The Himachal Pradesh State Cooperative Bank Ltd. is an Apex Bank of the State, in three tier credit structure with KCCB and Jogindra Central Co-operative Bank
(
JCCB) as Central Banks in six districts. The State Co-operative bank has its branches on Core Banking System (CBS) Mode. A total of 1,654 Societies are affiliated with the Bank and the Bank is giving dividend out of its Profit.The role and responsibility of banks is well recognized as a partner for accelerating the socio-economic growth of the State. The flow of credit in all priority areas has been enhanced. As of September, 2020 banks in the State had achieved five out of the 7 National Parameters by RBI viz. Lending to Priority Sector, Small and Marginal Farmers, Micro
Enterprises, Weaker Sections and lending to women.. At present, banks have extended 56.14 per cent of their total loans to the Priority Sector Activities viz. Agriculture, MSME, Education Loan, Housing Loan, Micro Credit etc.
Agriculture loans constitute 17.06 per cent of total loans extended by Banks as on September, 2020 as against the National parameter of 18 per cent set by the RBI. Advances to Weaker Sections and Women have a proportion of 36.09 and 10.77 per cent in total lending by banks as against the National parameter of 10 and 5 per cent, respectively. Credit Deposit Ratio (CDR) of banks in the State stood at 42.33 per cent up to September, 2020.
The position of National Parameters is given below in the Table-5.1
Table-5.1
Position of Key Banking Business National Parameters In Himachal Pradesh
5.2 Financial Inclusion initiatives:
The Financial Inclusion denotes delivery of financial services and products at an affordable cost to the
excluded sections of our society and low income groups. Government of India has launched a comprehensive Financial Inclusion Campaign-
“Pradhan Mantri Jan-Dhan Yojana”
Sl.
No.
Sector Percentage of
advances as on 30.09.2019
Percentage of advances
as on 30.09.2020
National Parameter in
Percentage
1. Priority sector advances 58.37 56.14 40
2. Agriculture advances 18.85 17.06 18
3. Advances to Small & Marginal Farmers
11.81 12.10 8
4. Advances to Micro Enterprises 10.19 10.78 7.5
5. Advances to weaker sections 24.37 36.09 10
6. Advances to women 7.03 10.77 5
7. C.D.Ratio(Thorat) 44.33 42.33 60
8. Advances under DRI Scheme 0.01 0.01 -
9. MSME Advances(PSC) 41.63 41.73 -
10. Advances to SC/ST (PSC) 9.05 7.95 -
11. Advances to Minorities (PSC) 1.07 2.06 -
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(PMJDY) throughout the country to bring the excluded sections of our society in formal banking system. This special campaign has completed more than six years. Banks in the State have covered all the households with at least one Basic Saving Deposit Account of each household. Banks have 16.03 lakh Basic Saving Bank Deposit Accounts (BSBDA) under the scheme up to September, 2020. Out of a total 16.03 lakh PMJDY accounts, banks have opened 13.09 lakh accounts in rural areas and 2.94 lakh accounts in urban areas. Banks have issued RuPay Debit Cards to 13.16 lakh PMJDY account holders and covered more than 82 per cent of PMJDY accounts. Banks have taken initiative to link the bank account with Aadhaar and Mobile Number and seeded 83 per cent of PMJDY accounts up to September, 2020.
5.3 Universal Social Security Initiatives under PMJDY Scheme:
In the 2nd phase of implementation of the Scheme, Government of India has launched three Social Security Schemes as a comprehensive social security initiative targeted mainly at the poor and underprivileged. The present status of Social security scheme is mentioned as below:-
i) Pradhan Mantri Suraksha Bima Yojana- (PMSBY
):
This scheme is providing renewable one year accidental death cum special ability cover of
`2.00 lakh (`1.00 lakh for partial and permanent special ability) to all the saving bank account holders in the age group of 18 to 70 years for a premium of `12.00 per annum per subscriber and renewable from 1st
June every year. Banks have 14.24 lakh subscribers under PMSBY up to September, 2020. The Insurance Companies have settled nearly 779 insurance claims under the scheme up to 18th December, 2020.
ii) Pradhan Mantri Jeevan Jyoti Bima Yojana- (PMJJBY):
This scheme is providing a renewable one year life cover of
`2.00 lakh to all the saving bank account holders in the age group of 18 to 50 years, covering death due to any reason for a premium of
`330.00 per annum per subscriber and renewable from 1st June every year. Banks have 4.07 lakh subscribers under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) upto September,2020.
The Insurance Companies have settled nearly 1,445 insurance claims under the scheme upto 18thDecember ,2020
.
iii)
Atal Pension Yojana (APY):Atal Pension Yojana is focused on the unorganized sector and it provides subscribers a fixed minimum pension of `1,000, `2,000,
`3,000, `4,000 or `5,000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at the age between 18 and 40 years. A fixed minimum pension is guaranteed by the Government, if regular contribution is made for 20 years. The State Government has also contributed in the APY. The co- contribution from State Government toward subscribers of APY is made in eligible accounts subject to 50 per cent of the total contribution by the subscriber or `2,000 whichever is lower. The State Government is focusing on MGNREGA workers,
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Mid Day Meal workers, Agriculture and Horticulture labourers and Anganwari workers to adopt the APY. Banks have focused on aggressive awareness campaign under the scheme through camps, press, media publicity etc. In the APY, banks have enrolled 1,77,167 subscribers under the scheme up to September, 2020. The Department of Post is also participating in the APY Scheme.
5.4 Pradhan Mantri Mudra Yojana (PMMY):
Pradhan Mantri MUDRA Yojana (PMMY) was rolled out in the country including Himachal Pradesh. It is responsible for developing and refinancing all Micro-enterprise sectors by supporting the financial Institutions which are in the business of lending to micro / small business entities engaged in manufacturing, trading and service activities. All advances granted on or after 08th April, 2015 falling under this category are classified as MUDRA loan under the scheme. As on September, 2020, banks in Himachal Pradesh have sanctioned fresh loans to the tune of
`304.18 crore to 20,317 new micro entrepreneurs under the Scheme in the current financial year 2020-21. For this period, a cumulative total of disbursed loans is `2,598.04 crore covering 1,66,096 entrepreneurs.
5.5 Stand-Up India Scheme (SUIS):
Stand up India scheme has been formally launched throughout the Country that aims to encourage entrepreneurial culture among unserved and underserved segments of the society represented by SC, ST and Women.
The Scheme facilitates loans of
`10.00 lakh to `1.00 crore from Banks to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up of a new enterprise in the field of construction, business or service sector (also termed as green field enterprise). Banks have sanctioned `94.23 crore to 494 new enterprises set up by SC/ST and Women entrepreneurs under the scheme up to September, 2020.
5.6 Financial Awareness and Literacy Campaigns:
Financial Literacy and Awareness campaign plays a significant role in reaching the target groups. Banks are conducting financial Literacy campaign through the Financial Literacy Centres (FLCs) and through its Bank Branches in Himachal Pradesh.
5.7 Business Volume of Banks:
The Aggregate Deposits of all banks operating in the State increased from `1,23,113 crore on September, 2019 to `1,39,352 crore by September,2020. The deposits of banks have grown at year to year growth of 13.19 per cent. The Aggregate advances have also increased from `52,209 crore on September, 2019 to `56,308 crore on September, 2020 which implies a year to year growth of 7.85 per cent. The total banking business have grown to
`1,95,660 crore and registered year to year growth of 11.60 per cent.
Public Sector Banks (PSBs) have the largest market share of 65 per cent, RRB a share of 5 per cent, Private Banks at 10 per cent and Co- operative Sector Bank at 20 per cent.
The comparative data is given in the Table-5.2.
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